Loans you can actually get without a bank account

12 December 2018

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Compare lenders that don’t require a checking account.

Without a checking or savings account, your loan options may come up short. But alternative services could be a way for you to bridge a financial gap without the need for your local bank.

LoanMart Auto Title Loans

A LoanMart auto title loan allows you to borrow money against your car, even if you have bad credit and no bank account.

Can I really get a loan with no bank account?

Yes. But it will likely cost you more than the average personal loan. That’s because many of your options fall into the category of short-term loans. These loans come by many names: payday, auto title, pawn, debit card and signature loans. What makes them expensive are fees and APRs that can top out at 700% or more.

A checking account, however, opens the doors to stronger lenders and could help you potentially qualify for competitive rates, if you have good credit.

Why do lenders require a bank account?

When reviewing your application, some lenders like to see how much money you have to get an idea as to how you handle your personal finances. A bank statement can easily provide this information.

Bank accounts also make it easier for lenders to transfer your requested funds quickly. These days, most lenders use the electronic Automated Clearing House (ACH) to disburse your loan and collect repayments. ACH works only between bank accounts.

Beyond this, a bank account can show lenders that you’re financially healthy and not a borrowing risk. The less of a risk you are, the better the chance you have for approval and competitive rates.

4 questions to ask to find the right loan option

There’s no one “best” loan out there. Answer these questions to find out where you might want to start looking.

Browse your loan options by loan type

Title loans

This short-term loan option allows people who might not meet personal loan requirements to borrow against the value of their car. You can often take out 25% to 50% of your car’s value, though it’s possible to find loans for up to 90% of its resale price. Some lenders don’t require a bank account if you apply in person.

With a title loan, you put your car’s title up for collateral, rather than the vehicle itself. This means you’re able to drive it around while you’re repaying your loan.

If you aren’t able to pay it back, however, you’ll lose ownership of your car. This is a real risk: A May 2016 Consumer Financial Protection Bureau study found that a fifth of all title loans ended in repossession — and a third ended in default.

Collateral makes you less of a risk to your lender, which often means stronger rates than you’d find with a payday loan. But these loans are still expensive and face state regulations.

Like with payday loans, consider calling ahead to make sure you can qualify without a bank account.

General eligibility. You must be a US citizen or permanent resident who’s at least 18 years old and possesses a car title in your name. You must also prove regular income.

Maximum loan. Typically 50% of your car’s value.

Typical APR. Can be around 200%.

How to apply. Take your car’s title to your lender and complete a quick form. You’ll need to drive in your car for an appraisal before you can collect your loan in cash, as a check or by money order.

How long it takes. As little as one day.

That short-term loan might take longer to repay than you think.

A high APR on a payday or title loan might not cost much if you can repay it on time. But it can become expensive if you choose to roll over your loans or take out a new loan to pay it off later.

The cycle of debt is real: A 2014 Consumer Financial Protection Bureau study found that borrowers renew more than 80% of payday loans issued in the country. It also found that people who regularly take out payday loans are likely to stay in debt for at least 11 months at a time. This leaves many Americans paying several times the amount they borrowed.

Before taking out any loan, ask yourself how likely it is that you can repay your loan on time. If you struggle with your finances, consider contacting a credit counseling agency before taking on a loan.

Pawn loans

Rather than sell and buy back your personal items, some pawn shops let you put up your valuables for collateral on a loan. With a pawn loan, you borrow a percentage of your item’s resale value — typically 25% to 60% — repaying it in cash, after which your items are returned.

Rates tend to be high, though they’re negotiable, and depend on your state’s laws and your relationship with the shop. Typically, you have a few months to pay it off.

General eligibility. You must be at least 18 years old and own an item of high resale value, like jewelry or electronics.

Maximum loan. Around 60% of your item’s value.

Typical APR. Varies widely by state, though it’s often less expensive than a payday or title loan.

How to apply. Get your item appraised online, and take your item and appraisal to the pawn shop. Complete a quick form to get your cash, along with a ticket to reclaim your item after repaying your loan.

How long it takes. Typically no more than one day.

Debit card loans

By definition, these loans don’t involve sending cash to a bank account. Instead, your lender loads your funds onto a prepaid debit card in your name, which you can pick up at a store or receive by mail. You’ll need proof of a bank account to qualify though. The convenience here is that you don’t have to have funds deposited or withdrawn from your bank account if you don’t want to.

These cards can encourage repeat borrowing, offering an easy way to sign up for future loans. Some even allow you to earn rewards like you would with a credit card.

General eligibility. You must be a US citizen or permanent resident who’s at least 18 years old and can prove regular income.

Maximum loan. Varies by lender and financial situation.

Typical APR. Can be 200% to 700% or more.

How to apply. Complete an application online or in a store.

How long it takes. As little as one day.

Bitcoin loans

If you don’t have a bank account, another option might be to repay a term loan entirely in bitcoin, thanks to lending platforms like Btcpop. Here, investors fund your loan and collect on repayments, rather than a bank or online lender.

Already an expert in crypto? You’ll understand the risks better than someone who’s new to the game. Otherwise, this borrowing option might not be for you.

Why not? For one, bitcoin is not a stable currency. Its value changes by the minute, and the federal government treats it as a type of security, like stocks or bonds. It’s impossible to predict how much your coin will be worth tomorrow, let alone when your loan is due.

Bitcoin is also in a regulatory gray area in the US. To make things even more complicated, most bitcoin lenders are headquartered abroad. Fewer restrictions can allow lenders free reign to practices that are illegal in the US, leaving you vulnerable to scams.

How to apply. Set up a Btcpop profile, post a request for funding and wait for investors.

How long it takes. As little as one day.

Payday loans

“Payday loans” have become a catch-all phrase for any short-term loan that doesn’t require collateral. These loans are designed for people who can’t qualify for a personal loan due to bad credit or a missing eligibility requirement — like a bank account.

If you apply in person, some lenders let you pick up and repay your funds in cash or by money transfer.

Knowing which payday loan you should apply for depends on how much money you need. If you need more than $1,000, a traditional payday loan might be the way to go — you pay it back in full the next time you get paid plus a fixed fee.

Payday loans aren’t legal in every state. Even if they are, each state — and sometimes each city — has its own regulations that might prevent lenders from offering no-bank-account loans.

General eligibility. You must be a US citizen or permanent resident who’s at least 18 years old and living in a state where payday loans are legal. You must also prove regular income, with some lenders restricting how much of your income can come from benefits. Others require a bank account.

Maximum loan. Typically up to $500 for traditional payday loans.

Typical APR. Often 200% to 700%, depending on the lender.

How to apply. Go in person to the payday lender, complete a quick form and get your loan in cash or by money transfer.

How long it takes. As little as one day.

What are my options if I want to get a bank account?

If you don’t qualify for a checking account at your local bank — or just don’t want to pay their fees to open one — you have alternatives.

No-fee checking account

A 100% free checking account is rare — typically, withdrawing money overseas or replacing a credit card can still cost you. But some banks offer checking accounts with no monthly, ATM or even overdraft fees. It’s even possible to find a bank that doesn’t charge a fee for international money transfers.

Because each bank has its own requirements, make sure that you’re eligible for such an account. You might need to meet a minimum income or opening deposit — though that can be as low as $5 at a credit union.

Savings accounts

Some lenders are willing to work with borrowers who have only a savings account, as long as it can accept your disbursed funds. You generally won’t have to meet as many requirements or pay monthly fees. In fact, you could earn a small amount of interest on the funds you keep there.

Having a savings account opens up your borrowing options slightly. But regular withdrawals might also come with fees, making it difficult for you to use it as a checking account.

4 steps to get a bank account

You may have avoided getting a bank account because banks can charge high fees and it can be difficult to manage if you’re living paycheck to paycheck. But you can actually save money if you find the right bank. A bank account can open you up to better loan options with lower APR and fees. It also can help you manage your monthly bills and make payments easier.

1. Gather your documents

Deposit. This will vary by bank, but you’ll need somewhere between $25 and $100 to open an account.

For opening an account online you’ll need to scan any documents and make the deposit using a debit or credit card or make a transfer from another account.

2. Fill out the application

Whether online or in person, you’re required to fill out an application. In order to approve your account, the bank runs a credit check, checking on your banking history. If you’re approved you’ll be given your account and routing number along with other account information.

3. Read the fine print

Remember that opening a bank account is allowing someone else to care for your money — so be sure you understand the bank’s policies and fees. Read through any paperwork looking for extra fees and when your funds are available for withdrawal.

4. Manage your account

Once you make your initial deposit, register for direct deposit, autopay and keep up with what you spend so you don’t overdraw your account. Most banks have online accounts or apps where you can check your balance, pay bills and more.

Bank accounts for undocumented immigrants and recent arrivals

Even if you don’t have a green card, you might be able to open a bank account. Many banks are willing to work with you as long as you meet other requirements. Generally, you’ll need to at least provide your passport or other government-issued ID, proof of address and your tax ID number. You might also need to show proof of income.

If you’re an international student, you can often open a bank account with proof of enrollment and your immigration papers. In this case, you aren’t required to prove any income.

Why Americans don’t have a bank account

If you don’t have a bank account, you’re not alone — though you’re part of an exclusive club. According to the FDIC, only 0.7% of Americans live in households where nobody has a bank account.

Underbanking, however, is more common: Nearly 20% of Americans have a bank account but also rely on other financial products like money orders, check cashing or payday loans.

Bottom line

It’s possible to get a loan without a checking account. Your main options are auto title loans, pawn shop loans and bitcoin loans.

But you might want to reconsider your bank account options before you apply. Most competitive lenders require borrowers to have an active checking account to verify your finances and have a place for deposits and repayments.

Frequently asked questions

Yes, though getting a loan while on Social Security is risky. Your options are limited because many payday lenders restrict how much of your income can come from programs like Social Security.

Yes, but you’re generally limited to dealership financing. Your income is often more important than maintaining a bank account. So if you can provide other proof that you have money coming in, you might qualify.

Like with personal loans, your options with no bank account are typically more expensive and can come with traps that you might not find with a typical personal loan. Learn how this financing works in our guide to car loans.

No. Most legit lenders require income, but you might find a loan without a job. If you receive alimony, unemployment benefits or other monthly payments, you can qualify for financing with some lenders.

Image source: Shutterstock

Before you visit LoanMart…

You must live in Alabama, Arizona, Illinois, Missouri, New Mexico, South Carolina or Utah to get a title loan through LoanMart. If you don’t live in one of those states, explore other loan options.

Anna Serio is a staff writer untangling everything you need to know about personal loans, including student, car and business loans. She spent five years living in Beirut, where she was a news editor for The Daily Star and hung out with a lot of cats. She loves to eat, travel and save money.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

86 Responses

AsiaDecember 6, 2018

I am trying to takeba loan out for my child christmas and all i have is my debit card that my paycheck comes on

Thanks for getting in touch! You may certainly take out a personal loan even if you don’t have a bank account but it will likely cost you more than the average personal loan. That’s because many of your options fall into the category of short-term loans. These loans come by many names: payday, auto title, pawn, debit card and signature loans. What makes them expensive are fees and APRs that can top out at 700% or more.

A checking account, however, opens the doors to stronger lenders and could help you potentially qualify for competitive rates, if you have good credit.
As a friendly reminder, review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the product disclosure statement of the product and contact the lender should you need any clarifications.

Thanks for getting in touch with finder. I hope all is well with you. :)

Yes, it is still possible, but having a bad credit does limit your options. Please go to this page to know how to get a payday loan on a prepaid debit card. On the same page, you will also see a table that shows you a list of lenders who might be able to help you. Click on the “Go to site” green button to be redirected to their website.

Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.

I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

Thanks for getting in touch! To get started in applying for a loan, go to the list on our page and pick a lender that suits your needs. Click the GO TO SITE BUTTON to get directed to their page. Carefully take note of their eligibility requirements, terms and conditions, and product disclosure statement. This will help you in the approval process and increase your chances of getting approved.

Hope this was helpful. Don’t hesitate to message us back if you have more questions.

Without a bank account you’re generally limited to short-term loans. Auto title and pawn loans typically require collateral, while other options don’t. A checking account, however, opens the doors to stronger lenders and could help you potentially qualify for competitive rates, if you have good credit. You are already in our comparison/guide in getting a loan without a checking account and you may refer to out table above. Once you have decided on the suited loan for your needs, you may click on the green ‘Go to site’ button to submit your application or know more about the loan offer.

The lenders who might help you in getting a personal loan without a bank account is on the table above. Before applying for a loan, please ensure that you meet the eligibility criteria and requirements of the lender and read the loan details, as well as the relevant PDS/ T&Cs before making a decision. After which, consider whether the product or option is right for you and your needs.

Thanks for your question! It’s possible to get a loan if you receive regular benefits from the VA. You might want to visit our page on loans for people on a pension to get more details on how that works.

If you receive a form of pension, whether it’s an employer retirement benefit or Social Security, you may find your loan options somewhat limited. Some lenders have stricter criteria for those receiving pension.

It’s important to know that there are loan options out there. It’s even more important to know how to compare these options so you can choose the right loan for you. Read on to see what’s available from THIS link, compare your options and find out how to apply.

Getting a loan without a bank account may be restrictive. The information above will show the options you have of getting approved of one.

Payday loans can be a good option since these loans are designed for people who can’t qualify for a personal loan due to bad credit or a missing eligibility requirement — like a bank account.

You must be a US citizen or permanent resident who’s at least 18 years old and living in a state where payday loans are legal. You must also prove you have a regular income, with some lenders restricting how much of your income can come from benefits.

Also, please note that you can get a loan while on Social Security, however, it is risky. Your options are limited because many payday lenders restrict how much of your income can come from programs like Social Security.

Some lenders will consider you for a loan when you’re not currently employed, but you’ll need to be earning some form of income or have suitable income-earning assets to repay the loan. This could mean receiving welfare payments, being self-employed or receiving a regular deposit into your account from investments.

Often, lenders will require access to your banking history and financial documents in order to verify that you’ll be able to repay your loan.

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